Novice starting out need advice

from Lindenhurst, New York

posted about 2 years ago

Hi my name is Amanda I just recently stumbled upon investing in real estate especially wholesaling. I really want to get involved in wholesaling real estate in my area. I live in New York on Long Island in Suffolk county. I have long thought about becoming a real estate agent and when I started researching becoming a real estate agent I stumbled upon real estate investing. Now that I've been doing my research on wholesaling properties I feel like there is always questions it sounds so simple but yet seems so difficult especially when you know nothing about real estate. My question is, I understand the process of wholesaling a property you make an offer to a seller who is eager to sell and then you take that offer and flip it to an investor for profit all well and good where my questions come in; How do you learn about the contracts a sellers agreement where do you find those contracts? Do I have to go sit down with the lawyer first before I get a contract is there certain ways that contracts need to be worded or is there one standard contract across the board for wholesaling? If I do have to sit down with a real estate attorney how do I find a reputable real estate attorney that is willing to work with such a newbie in the investing world? And how do the closings work? I get that you go to the closing agent but how do I find a closing agent to work with and what really does the closing agent do? do you have to pay a closing agent? I feel like I understand the process of wholesaling and doing research on properties but what I'm lacking the most is understanding the legal aspect and covering my *** in the process. I guess what really makes me nervous is the paperwork because I'm such a novice that I'm not sure I know what I should know about the contracts and the closings. I think this website is great and all this information is great it is very overwhelming and I really want to get started I have an uncle who does real estate appraisals and I'm going to sit down with him and talk to him about this I'm not sure if there's some information he may have that I don't. What really concerns me is I understand the process but I feel like I lack the knowledge in real estate to pull it off. I am definitely a go getter and I want to build a better life for myself with financial stability which will allow me to retire early and not work as hard. I'm a nurse a firefighter and an EMT I give to my community so much and I run myself ragged for little money but good gratification however what I'm looking to do is turn my life around financially. I could definitely use all the advice I can get before I make my first deal.

Real Estate Agent from Queens, NY

replied about 2 years ago

Good Morning Amanda,

Welcome to BP and congrats on taking steps towards financial freedom. Most of your questions can be answered just by searching here on BP or google. Another key thing to do is network and reach out to local investors who are willing to show you the ropes. This takes time and effort but a lot of it can be done right here on BP by reaching out to people in your target areas. REIA Meet-ups are a good place to meet people and get some more knowledge on the process. Also, as you mentioned, a good RE attorney is key.

I'm a fairly new wholesaler so I don't have all the answers but I've found that its easiest to simplify things. Continue to educate yourself and a lot of your questions will be answered along the way. As far as contracts, every deal is different and contracts often vary. Search for different types of "subject to" contracts which allow you to assign the contract to an end buyer. You'll get a good sense of what the wording is like.

You're in a good place to get started learning since you have a family member in the industry willing to help out. Ask your uncle if he knows any good title companies. They would be able to fill you in on the closing process.

Lastly, organize your thoughts and goals. I understand things can seem overwhelming in the beginning but take your time to learn ALL the important aspects of wholesaling. The contract and closing processes can be lengthy at time and can be relatively short and sweet at times.

Some other things to learn about are:

How to budget for a marketing campaign

How to lay out your marketing strategy

How to track leads and response rates

What to say to sellers

How to conduct CMAs & Analyze deals

What to say to cash buyers

These are things that usually happen before the contract and closing processes so they should probably rank higher on your priority list.

A lot to get into but I hope this helps. Keep us updated on your progress and best of luck to you!

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